Official announcements from the Japanese government or financial reports

Nissan and Honda Eye Merger to Form $54 Billion, 7.4 Million Vehicle Giant, Challenging Toyota

Dec 19, 2024, 06:40 AM

Nissan Motor Co. and Honda Motor Co. are in discussions about a potential merger, aiming to create a formidable competitor to Toyota Motor Corp. in Japan and address global competitive challenges. The talks have been confirmed by both companies, with a memorandum of understanding signed to explore a strategic partnership focused on vehicle electrification and intelligence. Nissan's shares surged by 24%, marking its largest gain in 50 years, following the news of the merger talks. Renault SA, Nissan's largest shareholder, has expressed openness to the merger discussions, seeking to insulate itself from Nissan's ongoing crisis. The potential merger could create a company valued at $54 billion, with an annual production capacity of 7.4 million vehicles, positioning it as the third-largest automotive group globally. The Japanese government supports the formation of this new automotive pillar to counter the growing influence of Chinese manufacturers in the market.